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Alteration of Share Capital - 3 Video Lecture | Advanced Corporate Accounting - B Com

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FAQs on Alteration of Share Capital - 3 Video Lecture - Advanced Corporate Accounting - B Com

1. What is the process for altering the share capital of a company?
Ans. The process for altering the share capital of a company involves following the regulations set forth in the Companies Act, which may include obtaining approval from shareholders, obtaining approval from the Board of Directors, and filing necessary documents with the relevant authorities.
2. What are the reasons for altering the share capital of a company?
Ans. Companies may alter their share capital for various reasons such as increasing capital for expansion, reducing capital due to losses, consolidating shares, subdividing shares, converting shares into stock, or buying back shares.
3. Is it mandatory to obtain approval from shareholders for altering the share capital of a company?
Ans. Yes, in most cases, altering the share capital of a company requires approval from shareholders as per the Companies Act. The specific requirements for shareholder approval may vary based on the type of alteration being made.
4. What are the implications of altering the share capital of a company on its financial statements?
Ans. Altering the share capital of a company can have significant implications on its financial statements, including changes in the company's equity, share capital, and reserves. It is essential to reflect these changes accurately in the financial statements to provide a true and fair view of the company's financial position.
5. Are there any legal implications of altering the share capital of a company?
Ans. Yes, altering the share capital of a company must be done in compliance with the legal requirements set forth in the Companies Act. Failure to adhere to these regulations can result in legal consequences, penalties, or even the invalidation of the alteration. It is crucial to seek legal advice and ensure compliance with all relevant laws and regulations when altering the share capital of a company.
89 videos|52 docs|22 tests
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